You’ve won a new contract. The client asks for a certificate of insurance before you can start. Now what?
A certificate of insurance (COI) is a one-page document that summarizes your business insurance coverage — policy types, limits, effective dates, and the insurer’s name. It’s proof that your business is insured, and it’s required by clients, landlords, lenders, and government agencies more often than most small business owners expect.
What Information Is on a COI?
| Field | What It Shows |
| Insured | Your business name and address |
| Insurer(s) | Name of the insurance company issuing each policy |
| Policy Type | General liability, commercial auto, workers’ comp, etc. |
| Policy Number | Unique identifier for each active policy |
| Coverage Limits | Per occurrence and aggregate limits for each policy |
| Effective Dates | Start and end dates of each policy |
| Certificate Holder | The entity requesting the certificate |
| Additional Insured | Third parties covered under your policy (if applicable) |
The standard form used for most COIs is the ACORD 25, which is a standardized certificate template accepted across industries.
Who Requires a Certificate of Insurance?
Commercial landlords — Before signing a lease, most require proof that you carry general liability and property insurance, and they want to be listed as an additional insured.
Clients and general contractors — Before starting a project or signing a service contract, clients often require minimum coverage levels. If you’re a subcontractor, the GC almost always requires one.
Government contracts and permits — City or state permits for certain work (construction, events, food service) typically require a COI.
Lenders (SBA loans) — As discussed with hazard insurance, lenders require proof of coverage on collateralized assets.
How to Get a Certificate of Insurance
- Contact your insurance agent or broker — they issue COIs on your behalf. Most can send one within hours.
- Provide the certificate holder’s information — the name and address of whoever is requesting it.
- Specify if additional insured status is needed — this is a policy endorsement, not just a name on the COI.
- Request the COI be emailed directly to the requesting party if needed.
Most insurers and brokers can generate a COI at no cost as part of your policy. Some online platforms (like Next Insurance or Simply Business) let you generate and share COIs instantly through an app or dashboard.
Additional Insured vs. Certificate Holder: What’s the Difference?
| Term | What It Means | Practical Impact |
| Certificate Holder | Named on the COI as the requesting party | Gets notified if policy is cancelled |
| Additional Insured | Added to your policy with their own coverage rights | Can make claims under your policy |
Adding someone as an additional insured is a more substantial commitment than just naming them as a certificate holder. It may come with an additional premium depending on your insurer and policy type.
Common Mistakes to Avoid
Sending an expired COI. Always double-check the policy effective dates before submitting. If your policy renewed, you’ll need a new certificate.
Confusing certificate holder with additional insured. Many clients request both — make sure your agent knows exactly what’s being asked.
Not reading the coverage requirements. Some contracts specify exact minimum limits (e.g., $2M general liability). Make sure your policy meets those before sending the COI.
Getting a COI for coverage you don’t actually have. A COI only reflects real, active policies. Misrepresenting coverage is fraud.
A certificate of insurance is simply proof of something you hopefully already have. The key is making sure your actual coverage meets what’s being asked — and having a responsive agent who can get documents out quickly when a deal depends on it.